In this FDD Talk post, you’ll learn the following:
- Section I – Background information on The Camp Transformation Center franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for The Camp Transformation Center franchise, based on Item 7 of the company’s 2021 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for The Camp Transformation Center franchise, based on Items 5 and 6 of the company’s 2021 FDD
- Section IV – Number of franchised and company-owned The Camp Transformation Center outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD
- Section V – Presentation and analysis of The Camp Transformation Center’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:
- 2019 average and median gross sales for the 10 company-owned, 86 franchised and licensed, and all 96 The Camp Transformation Centers that were open and operating for all of 2019
- 2020 average and median gross sales for the 3 company-owned, 89 franchised and licensed, and all 92 The Camp Transformation Centers that were open and operating for all of 2020
- 2020 average gross sales, cost of goods sold, gross profit, payroll, rent and utilities, repairs and maintenance, advertising and marketing, merchant fees, other expenses, total expenses, net operating income, imputed royalty, and net operating income minus adjustment for the 3 company-owned The Camp Transformation Centers that were open and operating for all of 2020
- 2020 median gross sales, gross profit, and total expenses for the 3 company-owned The Camp Transformation Centers that were open and operating for all of 2020
Section I – Background Information
16 Things You Need to Know About The Camp Transformation Center Franchise
Expands Into Idaho
1. In mid-November 2021, The Camp Transformation Center announced the opening of its first location in Idaho. Robert Beggs, a longtime gym member turned franchisee of The Camp, celebrated the grand opening of his gym in Boise on October 8. The Boise location is managed by Robert’s daughter, Emily Beggs.
2. The experienced franchise owner oversees a second location in Carson, California, near his Southern California home. Robert says there’s exciting growth in Boise, where Emily lives, and they both recognized the timing was right to bring the gym franchise to the Gem State.
3. Robert Beggs said, “Emily and I share a passion for helping people. We care about teaching our clients how to be healthy, because so many people have never had success until they find The Camp. A lot of what we do is counseling, we encourage our members through the difficulties and help them overcome hardships and achieve their goals.”
4. Home of the free “20-Pound Weight Loss Challenge,” The Camp Transformation Center’s flagship program consists of group training with dynamic interval workouts, nutrition and supplement plans, highly qualified trainers, and a ton of positive emotional support. The Camp is a community of people who treat fellow members like family.
5. Robert has first-hand experience of the transformation experienced by committed members of The Camp. He was introduced to the gym franchise in 2014, when he signed up for the six-week challenge at Camp Anaheim and lost the 20 pounds.
6. “That ignited my fitness journey,” Robert says. “It gave me confidence, and the community support keeps members motivated and engaged. You often see people staring at their toes as they walk around a typical gym, avoiding eye contact. The Camp is different. Members gain confidence quickly because the environment is friendly and welcoming.”
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7. Alejandra Font, co-founder of The Camp Transformation Center, said, “We are thrilled to bring The Camp Transformation Center’s unrivaled experience to men and women in Boise who are ready to take control of their health. Like so many of our members, Robert has become a brand ambassador, and we’re grateful for his and Emily’s passion for helping people achieve their weight loss goals.”
Records Strong Growth in 2021
8. At the end of December 2021, The Camp Transformation Center celebrated a year of of expansion and is already on track for a record-breaking year of growth in 2022. The radically different fitness franchise has transformed thousands of lives across North America and continues to have a positive impact with each new community it reaches.
9. New locations in 2021 include The Camp’s inaugural gyms in two states, with one in New Mexico and one in Idaho. The Camp expanded its reach in California, Texas, and Arizona with new gyms in Long Beach, Madera, Ontario Ranch, Dublin, Arcadia, and San Antonio. With eight new gyms opened in 2021, The Camp had 106 locations at the end of 2021, and 40 locations already in development for 2022.
10. Alejandra Font, co-founder of The Camp Transformation Center, said, “Our members will be the first to tell you that a membership at The Camp represents a lifelong commitment to better health and improved well-being. Unlike common trendy workouts and fitness fads, our franchisees – many of whom started out as members – build supportive communities with a holistic approach that yields lasting results.”
11. In addition to The Camp’s rapid nationwide expansion, the franchise is continually named in prestigious publications as a top franchise opportunity. The fitness concept ranked No. 166 on Entrepreneur’s Franchise 500 for the third consecutive year in 2021, up from No. 387 in 2020 and No. 458 in 2019.
12. Font added, “Our continued climb on coveted lists like Entrepreneur’s Franchise 500 is confirmation of what we’ve known for more than a decade: people want and need a reliable weight loss solution in their communities. Franchisees enjoy a rewarding opportunity to impact people’s lives in a positive work environment with a loyal customer base.”
13. Franchisees also benefit from multiple revenue streams, including reliable revenue via monthly memberships and recurring product sales, such as nutritional supplements. With a proven training and support system from a team of franchise experts, The Camp Transformation Center franchisees hit the ground running from the day their franchise agreement is signed.
14. The Camp Transformation Center was founded in 2010 by Sam Bakhtiar and Alejandra Font and her husband Luis Font in Southern California. Bakhtiar and Alejandra Font were both bodybuilders and personal trainers. They both felt that the personal training model was broken and expensive and gym membership lacked the results and customer service that was needed. Bakhtiar and Font wanted to offer a space where they could set up different boot camps to help people achieve their fitness goals.
15. To attract clients and prove their methods worked, Bakhtiar and Font challenged their first clients to lose 20 pounds. The first group successfully completed the program and Bakhtiar and Font decided to continue offering the program. Bakhtiar and Font continued to refine The Camp Transformation Center concept and opened additional locations around Southern California. Bakhtiar and the Fonts started franchising The Camp Transformation Center in 2016.
Entrepreneur’s Franchise 500
16. The Camp Transformation Center did not rank on Entrepreneur’s 2022 Franchise 500 list.
Section II – Estimated Costs
- Detailed estimates of The Camp Transformation Center franchise costs, based on Item 7 of the company’s 2021 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Detailed information on The Camp Transformation Center’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2021 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- Outlets at the Start of the Year: 66
- Outlets at the End of the Year: 86
- Net Change: +20
- Outlets at the Start of the Year: 86
- Outlets at the End of the Year: 98
- Net Change: +12
- Outlets at the Start of the Year: 98
- Outlets at the End of the Year: 96
- Net Change: -2
- Outlets at the Start of the Year: 17
- Outlets at the End of the Year: 10
- Net Change: -7
- Outlets at the Start of the Year: 10
- Outlets at the End of the Year: 10
- Net Change: 0
- Outlets at the Start of the Year: 10
- Outlets at the End of the Year: 3
- Net Change: -7
Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis
- In Parts 1-3 below, The Camp Transformation Center presents certain historical information for the financial performance of Centers in 2019 and 2020. The explanatory notes following each table are an important part of the information presented.
Part 1 – 2019 Average Gross Sales
- Number of Centers in Group: 10
- Average Gross Sales: $642,056
- Median Gross Sales: $735,937
Franchised and Licensed Centers
- Number of Centers in Group: 86
- Average Gross Sales: $452,125
- Median Gross Sales: $427,810
Above Centers Combined
- Number of Centers in Group: 96
- Average Gross Sales: $547,091
- Median Gross Sales: $441,607
- “Gross Sales” is defined in the Franchise Agreement as the total of all cash or other form of payment received for services, products and tangible property of every kind, performed or sold at, in, upon or related to your Center and from any vending, game or other type of machine or similar device located at your Center; and any and all other amounts which are received as compensation for any services rendered from your Center.
- “Gross Sales” does not include amounts collected and paid out for sales taxes levied on the sale of products and services or the proceeds from the sale of any furniture, fixtures, or equipment previously used at your Center.
- “Company-Owned” refers to the Centers operated by The Camp Bootcamp, Inc. and other affiliates. Five of the 10 company-owned Centers in Part 1, or 50%, exceeded the 2019 average Gross Sales for that group. The range of Gross Sales was $375,593 to $854,037.
- Part 1 includes data for 85 franchised Centers and 1 licensed location. There are no material differences in operation between franchised and licensed locations.
- Part 1 excludes Centers that opened or closed during 2019 and therefore did not operate for the entire year. Part 1 also excludes 2 franchised Centers in Mexico and 1 licensed Center for which The Camp Transformation Center does not have access to sales information under the terms of the license agreement.
- Seven of the franchised Centers are former licensed locations that converted to franchises during 2019; Part 1 reflects their 2019 Gross Sales both before and after conversion.
- Thirty-six of the 86 franchised and licensed Centers, or 42%, exceeded the 2019 average Gross Sales for that group. The range of Gross Sales was $114,286 to $1,305,329.
Part 2 – 2020 Average Gross Sales
- Number of Centers in Group: 3
- Average Gross Sales: $534,117
- Median Gross Sales: $487,084
Franchised and Licensed Centers
- Number of Centers in Group: 89
- Average Gross Sales: $327,683
- Median Gross Sales: $308,775
Above Centers Combined
- Number of Centers in Group: 92
- Average Gross Sales: $334,415
- Median Gross Sales: $323,796
- “Company-Owned” refers to the Centers operated by The Camp Bootcamp, Inc. as of the end of 2020. Six company-owned Centers were sold to franchisees during 2020 and are included under Franchised and Licensed Centers. One of the 3 company-owned Centers in Part 2, or 33%, exceeded the 2020 average Gross Sales for that group. The range of Gross Sales was $464,324 to $650,943.
- Part 2 includes data for 88 franchised Centers and 1 licensed Center. There are no material differences in operation between franchised and licensed locations. Table 2 excludes the following Centers:
- 5 new franchised Centers that opened during 2020;
- 13 franchised Centers that permanently closed during 2020;
- 1 franchised Center that closed for an extended period for relocation;
- 1 franchised Center that closed for the year because, unlike other Centers, it was not able to conduct outdoor programs during COVID-related facility closures; and
- 1 licensed Center for which The Camp Transformation Center does not have access to sales information under the terms of the license agreement.
- Six of the franchised Centers are former company-owned Centers that were sold to franchises during 2020; Part 2 reflects their combined 2020 Gross Sales from both before and after the sale. Forty-two of the 89 franchised and licensed Centers, or 47%, exceeded the 2020 average Gross Sales for that group. The range of Gross Sales was $109,173 to $861,941.
- Information Regarding COVID Closures: The Centers included in Part 2 were temporarily closed or operating at limited capacity for portions of 2020 due to the COVID-19 pandemic. The periods of closure and capacity limitations varied from state to state.
- In California, where The Camp Transformation Center has the majority of its Centers, the facilities closed from March 2, 2020 and The Camp Transformation Center moved to online programs in the first week of April. Centers initially re-opened in California in June but closed again within 2 weeks. Centers re-opened again in late August, with outside programs only, limited to approximately 25% capacity.
Part 3 – 2020 Average Net Operating Income of Company-Owned Centers
Gross Sales: $534,117 (100.0%)
Less: Cost of Goods Sold: $59,015 (11.0%)
Gross Profit: $475,103 (89.0%)
- Payroll: $195,265 (36.6%)
- Rent & Utilities: $78,714 (14.7%)
- Repairs & Maintenance: $5,551 (1.0%)
- Advertising & Marketing: $27,060 (5.1%)
- Merchant Fees: $11,265 (2.1%)
- Other Expenses: $30,030 (5.6%)
- Total Expenses: $347,885 (65.1%)
Net Operating Income: $127,217 (23.8%)
Less: Adjustments to reflect material financial and operational differences between company-owned Centers and franchised Centers
Imputed Royalty (at 6% of Gross Sales): $32,047 (6.0%)
Net Operating Income Minus Adjustment: $95,170 (17.8%)
Gross Sales: $487,084 (100.0%)
Gross Profit: $422,034 (86.6%)
Total Expenses: $333,392 (68.4%)
- Although referred to as “Gross” Sales both here and in Parts 1 and 2, the figure shown is net of customer returns and refunds.
- COGS is the acquisition cost of supplements, apparel, and other merchandise sold in the Centers. Includes freight charges (shipping and delivery).
- Payroll includes salaries and wages, payroll taxes, payroll processing fees, and workers’ compensation.
- Rent & Utilities includes rent, gas and electric, telephone and internet, water, and trash disposal.
- Repairs & Maintenance includes office and building maintenance and janitorial services.
- Advertising & Marketing includes advertising, marketing, promotions, and texting services.
- Other Expenses includes bank charges, dues and subscriptions, independent contractors, liability insurance, professional fees, office supplies and software, licenses and permits, postage, travel, web technology, and general office expenses.
- A franchisor is allowed to make a financial performance representation (FPR) disclosing net profit based on company-owned data alone if the franchisor has a reasonable basis to make the FPR and includes the following information: (a) gross sales data from operational franchise outlets (see Part 1 above); (b) actual costs incurred by company-owned outlets; and (c) supplemental disclosure or adjustments to reflect all actual and reasonably expected material financial and operational differences between company-owned outlets and operational franchise outlets.
- These differences consist of fees and other expenditures required by the Franchise Agreement that company-owned Centers do not incur.
- Imputed Royalty is the average amount of royalties the company-owned Centers would have paid if they had been subject to a 6% royalty obligation in 2020. The royalty rate for franchised Centers was 5% of Gross Sales in 2019 but increased to 6% of Gross Sales for new franchised Centers in 2020. No amount has been imputed for Marketing Fund contributions because The Camp Transformation Center does not currently require Marketing Fund contributions from franchisees.
- The financial performance representations in Parts 1-3 are historical representations and not a forecast of future financial performance.
- The Camp Transformation Center obtained the data for the Centers in Parts 1 and 2 from the POS system of each Center. The Camp Transformation Center obtained the data for Part 3 from its Quickbooks accounting system. Neither the raw data nor the figures in Parts 1-3 have been audited.
- Some outlets have sold this amount. Your individual results may differ. There is no assurance that you’ll sell as much.